Analyst Turns Cautious on M&G and Admiral Markets Shares

UBS has turned more cautious on M&G (LON: MNG) and Admiral Group (LON: ADM), downgrading both stocks to Neutral this week as it reassesses valuations and sector headwinds heading into 2026.

UBS analyst Nasib Ahmed cut M&G to Neutral from Buy, while raising the price target to 290p from 275p. 

The broker said the stock’s recent performance means its valuation now looks full, limiting near-term upside despite a modest increase in the target price. 

UBS’s downgrade follows a period of strong gains for M&G, which hit an intraday high of over 280p per share on Wednesday before pulling back.

The move comes shortly after JPMorgan downgraded M&G to Neutral from Overweight as part of its 2026 outlook for the European insurance sector. 

JPMorgan cited stretched valuations and slowing earnings momentum after two years of outperformance, arguing that the sector’s total return potential is becoming more constrained.

UBS also downgraded Admiral Group to Neutral from Buy, cutting its price target to 3,300p from 3,950p. 

The broker said the UK motor insurer faces prolonged pricing headwinds, which are expected to weigh on earnings growth and margins.

Admiral has also come under pressure from JPMorgan, which earlier this month downgraded the stock to Underweight from Neutral with a 3,000p price target. 

JPMorgan highlighted similar sector-wide challenges, pointing to stretched valuations and stalling earnings momentum across European insurers.